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Tom Crulse Lines Incorporated issued bonds five years ago at $ 1 , 0 0 0 per bond. These bonds had a 2 5 -

Tom Crulse Lines Incorporated issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when Issued and the annual interest payment was then 15 percent. This return was In line with the required returns by bondholders at that point as described below:
\table[[Real rate of return,58],[Inflation premium,5],[Risk premium,5],[Total return,15%
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